All businesses must keep complete and accurate records from which the department may determine any tax for which the business may be liable. Such records must be preserved for a period of five years.
In general, records are to be kept, preserved, and presented upon request of the department which will demonstrate:
- The amount of gross receipts and sales from all sources, including barter or exchange transactions.
- The amount of all deductions, exemptions, or credits claimed through supporting documentation.
Such records may include general ledgers, sales journals, together with all bills, invoices, cash register tapes, or other documents or original entries supporting the books of account entries. The records should include all federal and state tax returns and reports and all schedules or work papers used in the preparation of tax reports or returns.